Pakistan’s Automotive industry is the biggest resource of the income of Pakistan and it highly depends on the import of cars. The local car production is not so good and the local cars are not high-quality cars as the consumers demand. The import of cars in Pakistan is very high and the demand for used cars high rather than local cars.
The demand for imported cars is very high in 2017 the import of used vehicle units is more than 80,000. Pakistan economy generates high profit from imported cars in the form of customs duty. The customs duty of imported vehicle is increased with the dollar rate and from the last 2 years the dollar rate is increased and the economy generates high income from imported cars.
Local production of cars is not fast in our country and did not fulfill the need for a vehicle in our economy that’s why the imported car is very important to fulfill the need of our consumers.
Import of Cars Effect
The need of vehicle is increased every day and only local production of cars did not enough for our country. Import of cars is a high need in our country. The most imported cars in Pakistan is 660cc and 1000cc and the customs duty of 660cc cars is around 5 to 8 lac. Imported cars also beneficial for us to complete the need of cars in our market. The machinery used in an imported vehicle is more than better as compared to local cars machinery. Pakistan generates high income from the import of cars. As the sales of the import of the vehicle increased the economy also generate more profit.
From the last 3 month, the government has changed the policy and under the new policy, it’s not possible for everyone to import car in Pakistan only the overseas Pakistani can import the car and the customs duty is paid in dollar its compulsory. Because of this new policy, the import of cars is decreased by 42% it is also a red sign for our economy because the need of the vehicle is not filled up with local cars and the profit government generate from the imported vehicle is stuck. The economy also faces a problem against this strict policy and the Automotive Industry also face a serious problem. The business of the dealers is also down and the income of our economy is decreased badly because this is the biggest industry in Pakistan.
In the last, we can say that our economy highly depends on the Automotive Industry and the success of the Automotive Industry is also a success of our economy. The income generated from this sector is very high as we see the import ratio of the year 2017. The automotive industry is suffering in this new policy the import is down thousand of the vehicle is stuck on the port just because of this new policy and this is a bad sign for Automotive Industry.